As per section 13 of the Partnership Act 1932, interest will be allowed out of profit only to the extent of available profit.

Transcription

1 1. Ram and Shyam are partners with the capital of rs.25000/- and Rs.15000/- respectively. Interest payable on capital is 10% p.a. Find the interest on capital for both the partners when the profits earned by the firm is Rs.2400/- A] Rs.2500/- and Rs.1500/- B] Rs.1500/- and Rs.900/- C] No interest will be paid D] None As per section 13 of the Partnership Act 1932, interest will be allowed out of profit only to the extent of available profit. 2. A, V and C are equal partners. D is admitted to the firm for one fourth share. D brings Rs.20000/- capital and Rs.5000 being half of the premium for goodwill. The value of goodwill of the firm is A] Rs.10000/- Rs.20000/- C] Rs.40000/- D] None 5000 /1 x4 =20000 (half) full value =20000 x 2 = A and B are partners sharing profits in the ratio 5:3. They admitted C giving him 3/10 th share of profit. If C acquires 1/5 th share from A and 1/10 th from B. New profit sharing ratio will be A] 5: 6 :3 B] 2:`4 :6 C]18: 24: 38 D] 17: 11: 12 A s share = 5/8-1/5 =17/40 B s Share 3/8-1/10 = 22/80 or 11/40 4. The goodwill brought in by incoming partner in cash for joining in a partnership firm is taken away by the old partners in their..ratio A] capital ratio B] New ratio C] old ratio D] sacrificing ratio 5. A and B are partners sharing profits and losses in the ratio 5:3. They admitted C and agreed to give him 3/10 th of the profit. What is the new ratio after C s admission? A] 35: 42: 17 B] 35: 21 :24 C] 49: 22: 29 D] 34: 20: 12 C s share 3/10 balance 1-3/10 = 7/10 A s new share 7/10 x 5/8 = 35/80 B s new share 7/10 x 3/8 = 21/80 C s share 3/10 x 8 = 24/80 6. Fixed capital account is credited with A] interest on capital B] profit of the year C] salary of the partner D] none In case of fixed capital, all adjustment will be done in current account

2 7] Outgoing partner is compensated for parting with firm s future profits in favour of remaining partners. In what ratio do the remaining partners contribute to such compensation amount? A] gaining ratio B] capital ratio C] sacrificing ratio D] profit sharing In case of admission = sacrificing ratio In case of retirement = gaining ratio 8] In the absence of an agreement, partners are entitled to A] salary B] commission C] interest on loan And advance D] profit share in capital ratio 9] Seetha and Geeta are partners sharing profits and losses in the ratio of 4 : 1. Meeta was the manager who received salary of Rs.4000/- per month in addition to a commission of 5% on net profits after charging such commission. Profits for the year is Rs /- before charging salary. The total remuneration of meeta is A] B] C] D] x 12 = /105 x 5 = ] In the absence of agreement, partners are liable to receive interest on their A] 12% simple interest B] 9% simple interest C] 10% compound interest annually D] 6% simple interest p.a. 11] X and Y are partners sharing profits in equal ratio. Z is admitted into the firm for 50% share in the profit which he acquires from X and Y equally. The profit sharing ratio will be A] 1/3 : 1/3 : 1/3 B] 1 : 1: 2 C] 2 : 1 : 1 D] none X new ratio 1-1/4 = 2/4 y new ratio 1-1/4 = 2/4 z new ratio ½ new ratio 1:1:2 12] A and B are partners sharing profits and losses in the ratio of 5:3. On admission C brings Rs.70000/- cash and Rs.48000/- against goodwill. New profit sharing ratio between A, B and C is 7:5:4. Find the sacrificing ratio A] 3:1 B] 4:7 C] 5 : 4 D] 2: 1 Sacrificing ratio = Old ratio new ratio A 5/8-7/16 = 3 B 3/8 5/16 = 1 13] A, B and C are partners with profit sharing ratio 4:3:2. B retires and Goodwill Rs was shown in the books of account. If A and C shares profits of B in the ratio of 5:3, then find the value of goodwill shared between A and C

3 A] 1850/- & 1950/- B] 1650/- & 1750/- C] 1950/- & 1650/- D]2000/- & 1600/- Gaining ratio = New ratio old ratio 14. A and B are partners sharing profits and losses in the ratio of 3:2 (A s capital is Rs and B s capital is Rs.15000). They admitted C and agreed to give 1/5 th share of profits to him. How much C should bring in towards his capital? A] 9000 B] C] D] If C s share is 1/5 then balance is 4/5 if 4/5 is 45000( ) then 1/5 is 45000/4 x 1= ] X and Y are partners sharing profits in the ratio of 3:1. They admit Z as a partner who pays Rs.4000/- as goodwill. The new profit sharing ratio being 2:1:1 among X, Y, Z respectively. The amount of goodwill be credited to A] X 3000 Y 1000 B] X only C] Y only D] none on admission goodwill to be shared in sacrificing ratio SR = OR NR X = 3/4-2/4 1 Y = ¼ - ¼ =0 16. A, B and C are partners sharing profits and losses in the ratio 2:1:1. Firm has a joint life policy of Rs /- and in the balance sheet it is appearing at the surrender value Rs.20000/-. On the death of A, how this Joint life policy (JLP) will be shared among partners A] 50000: 25000:25000 B]60000: 30000:30000 C]40000: 35000:25000 D] whole of Rs /- will be paid to A (surrender value) according to profit sharing ratio 17. A, B and C are partners in a firm. A took insurance on his life, for and on account of partnership and the premium in respect of insurance policy is paid out of the partnership fund. A designated B as nominee of the insurance. Who will be beneficiary of insurance policy? A] A B] B C] And B jointly D] Partnership firm of A, B & C 18. A and B are partners sharing profits in the ratio of 5:3. They admit C and the new profit sharing Raito is agreed at 4:2:1. The sacrificing ratio will be A] 5:3 B] 1:1 C] 2:1 D] 3:5 S R = OR NR A 5/8-4/7 = 3 B 3/8 2/7 = A and B are partners sharing profits in the ratio of 4:1. C is admitted for ¼th share in the profits which he acquires wholly from A. The new profit sharing ratio will be

4 A] 4:11:5 B] 10:5:5 C] 8:7:5 D] 11:4:5 C = ¼ A = 4/5-1/4 = 11/20 B] 1/5 to convert to 20 4/ Interest payable on the capital of the partners is charged in A] P and L A/c. B] P and L (Adjustment) A/c. C] P and L (Appropriation) A/c. D] Realisation account 21] X and Y partners sharing profits in the ratio of 3:1. They admit Z as a partner who pays Rs.8000 as goodwill the new profit sharing ratio being 2:1:1 among X, Y and Z respectively. The amount of goodwill be credited to A] X 6000 Y 2000 B] X only C] Y only D] None Goodwill be shared on SR. SR= OR NR for X = 3/4 2/4 =1 Y = ¼ -1/4 =0 22. in the absence of an agreement to the contrary A] An active partner is entitled for salary and a sleeping partner for interest on 6% per annum B] An active partner is entitled for salary and each partner for interest on 6% p.a C] All partners are entitled for salary and interest on 6 % p.a. D] No partner is entitled for salary or interest on capital 23. An ordinary partnership firm can have A] not more than 20 members B] not more than 50 members C] not less than 3 partners D] any number of partners 24. A, B and C are partners sharing profits in the ratio of 3:2:1. D is admitted. The new profit sharing ratio among A, B, C and D will be 3:3:2:2. The gain or sacrifice will be A] A sacrificed 6/30 B sacrificed 1/30 B] A sacrificed 1/ 30 B sacrificed 6/30 C] C gained 1/30D gained 2/10 D] Both a and c 25. When interest is to be allowed on the capitals of the partners, it is calculated on the basis of the A] Capital at the end of the year B] Capital at the end of the year less drawing if any C] Capital in the beginning of the year D] Average capital

5 26. In case revaluation account is prepared, the assets and liabilities appears in the books of reconstituted firm at their A] old book value B] market value C] revalued figure D] realizable value 27. A and B are partners sharing profits in the ratio of 3:2. C is admitted into the firm for 1/5 th shared in the profit which he acquires equally from A and B. The new profit sharing ratio will be A] 3:5:2 B] 4:4:2 C] 5:3:2 D] 6:2:2 C is share 1 /5 A is new share 3/5-1/10= 5/10 B = 2/5-1/10= 3/ Which of the following is true? A] An incoming partner acquires his share from all the old partners in their profit sharing ratio B] An incoming partner acquires his share from all the old partners in some agreed ratio C] An incoming partner acquires his share from one or more of the old partners in some agreed ratio. D] None of the above. 29] A and B are partners sharing profits and losses in the ratio of 3:2(A capital Rs and B Rs.36000). They admitted C agreed to give 1/5 th share of profits to him. How much C should bring in towards his capital? A] B] C] D] /5 = therefore 1/5 = 90000/4 x 1 = ] A and B are partners sharing profits and losses in the ratio of 3:2. They admit C into partnership for one fourth share of the profits while A and B as between themselves sharing profits and losses equally. The new profit sharing (NR) ratio and sacrificing ratio (SR) will be A] NR3:3:2 SR1:9 B] NR4:2:2 SR9:1 C] NR3:3:2 SR9:1 D]None New ratio 1-1/4 = ¾ A ½ of ¾ =3/8 B ½ of ¾ =3/8 C convert 1/4 =2/8 3:3:2 Sacrificing ratio = OR NR A =3/5-3/8 = 9 B = 2/5-3/8 = 1 31] Which of the following items are added to previous year profit for the purpose of goodwill valuation? A] loss due to fire B] loss on sale of fixed assets C] loss due to sale of invoice D] all of the above

6 32]X and Y shared profits and losses in the ratio of 3:2. With effect from 01/04/2009 they agreed to share profit equally. The goodwill of the firm valued at Rs.30000/-. The necessary single adjusting entry will involve A] Debit Y and credit X by Rs.3000 B] Debit X and credit Y by Rs.3000 C Debit Y and credit X by Rs.300 D] Debit X and credit Y by Rs.300 Old share of goodwill = X 30000x 3/5 = Y = x 2/5 = New share of goodwill = X x ½ = Y = x ½ = ] b 2] c 3] d 4] d 5] b 6] d 7] a 8] c 9] a 10] d 11] b 12] a 13] 14] d 15] b 16] a 17] d 18] d 19] d 20] c 21] b 22] d 23] a 24] d 25] a 26] c 27] c 28] c 29] d 30] c 31] a 32] b